Does Chasing Last Year's Winner Actually Pay Off?

This analysis helps you understand whether switching each year into the previous year's best-performing mutual fund historically improved investment outcomes. It compares this strategy with staying invested in consistently strong funds, category averages and benchmark performance.

What You'll Learn

Compare the historical results of chasing last year's winning fund against alternative investment approaches. Discover whether frequent switching produced stronger long-term outcomes or whether consistently strong funds historically delivered more reliable wealth creation.

Methodology

Using historical Net Asset Value (NAV) data, the analysis simulates an investor who switches each year into the previous year's best-performing fund within a category. The resulting wealth is then compared with the category average, consistently strong funds and the benchmark over the same historical period.

What Is Measured

EquityVoyage compares historical wealth created by the winner chasing strategy, category averages, consistently strong funds and benchmark performance. Together these measures help investors understand whether selecting yesterday's winners historically led to better long-term investment outcomes.

Data Source

Historical Net Asset Value (NAV) data is sourced from the Association of Mutual Funds in India (AMFI) and compared against the corresponding Nifty Total Return Index (TRI) benchmark. This page presents historical analysis for educational purposes only and should not be interpreted as a prediction of future performance.